It seems like a good way to get extra cash flow with very little work, plus with only 20% of these tenants actually exercising their option to buy, I'd still keep my rental house. 

If the house is actually valued at $500k why would the owners want to sell it for $300k?

Sellers do not want to go through the time, effort and exposure, or tie up their property, in a transaction that has no chance to close.There are those extremely rare cases, that become real estate legend, in which a buyer with little capital, and no borrowing capacity, is successful in convincing a seller of a large, expensive property to take him seriously and is able to perform a high wire act of raising capital from a variety of unconventional sources and actually complete the purchase.  

We must just actually use it. 

I'm actually studying for my test.

I actually need a photographer for a listing.

Unlike John, I'll contribute some advice that might actually help you since after all, that's what this site is supposed to be for. 

Here is what we know so far:Out of state land lord Has been for sale for more than 3 monthsAsking price 240kBuilt in 1981Each unit is 1050 sqft 3/2 with utility roomRent is $1050 (I have not seen the actual numbers this is what the real estate agent told us)Landlord is paying water and trash but don't have those numbers.Two units are currently leased Last roof: unknown AC and water heaters are currently working but do not know when they were last replaced.

I will definitely look into the numbers before anything and make sure that what he says actually is matching with what's on papers!

I am 25 years old and I recently closed a deal on my first house, last Monday actually!